“Citi has cut its forecast for Apple’s earnings, saying the U.S. trade war with China will further hurt iPhone sales in the second half of the year,” Michael Sheetz reports for CNBC.
“‘The US/China trade situation will result in a slowdown of Apple iPhone demand in China as China residents shift their purchasing preference to China national brands,’ Citi said,” Sheetz reports. “‘China represents 18% of Apple sales which we believe could be cut in half,’ Citi said.”
Sheetz reports, “Citi lowered its price target for Apple to $205 a share from $220 a share.”
Read more in the full article here.
MacDailyNews Take: “Could” be cut in half. Or not.
Huawei founder says he would protest Chinese government retaliation against Apple – May 28, 2019
Wedbush: Apple selloff is overdone, company faces ‘low likelihood’ that iPhones will be subject to tariffs – May 24, 2019
Gene Munster: China tariffs on Apple products unlikely – May 23, 2019
ARM cuts ties with Huawei after President Trump’s ban – May 22, 2019
U.S. to offer temporary exemptions to Huawei export ban – May 20, 2019
Apple Face ID parts supplier Lumentum halts shipments to Huawei following Trump administration ban – May 20, 2019
President Trump’s Huawei ban could end Android as we know it and possibly have a lasting effect on Apple – May 20, 2019
Huawei’s mockery of Apple over 5G chip sourcing didn’t age well – May 20, 2019
Google terminates Huawei’s Android license after Trump administration blacklist – May 20, 2019
Trump administration blacklists Huawei putting Apple at risk of retaliation from China – May 16, 2019
“‘Could’ be cut in half. Or not.”
Where’s the MDN wishful thinking now? Resorting to a quibble over whether Apple will lose half of its sales to China, or a little less? Wonderful analysis.
Apple is in serious trouble in China, and will be for quite a while until: 1) it diversifies manufacturing elsewhere; and 2) it quits relying on China as a source of growth while Trump wages his
reelection battletrade war on the Chinese.